Based on the notion of ‘One Nation, One Market, One Tax’, GST (Goods and Services Tax) was launched in India with the sole purpose of unifying the complicated and old tax structure of India. The implication of GST in India is the biggest reform that the country has ever seen since the 1990s. The tax structure of India was filled with so many unnecessary and complicated taxes that its reform was long overdue. To remove the redundancies and complexity of the tax structure, GST was launched in India on the night of July 1, 2017. It helped in removing all the indirect taxes charged by the state and central government and helped in unifying the taxation structure of India. GST Tax in India is of mainly three types which are as follows.
With having an economy of 2.4 Trillion dollar economy, GST Tax will surely help in much-needed transformation and the growth of the GDP of the country. It has turned into our large population of 1.3 Billion people into a large unified market. If you want to know more about the various things about the GST tax and the impact it has created on the taxpayers, this article will be perfect for you! Different types of Tax Slabs under GST Tax Structure: Under GST, there are five different tax slabs for the various goods and services. All the different types of goods and services come under these tax slabs. Let’s have a look at the tax slabs. GST slab of No Tax: There are some goods and services which are exempted from any kind of tax. Some of those goods are Rakhis without any precious metals like gold, silver, raw material used in brooms, Saal leaves and fortified milk, fruits, vegetables, and many more. Some of the tax-free services include savings account, Jan Dhan Yojna and all the hotels who have a daily terrif below Rs 1000. GST Slab of 5%: Some of the goods and services which will be charged 5% tax are Ayurvedic medicines, agarbatti, sliced dry mango, insulin, cashew nuts, unbranded namkeen, lifeboats, etc. Small restaurants along with transport services will have 5%. GST Slab of 12%: Goods like cell phones, sewing machines, namkeen, etc come under the 12% tax slab of the GST structure. Business Class air ticket will attract a tax of 12%. GST slab of 18%: This tax slab has the most number of goods compared to all the tax slabs. IT and Telecom services also come under this tax slab. GST Slab of 28%: Under the test slab of 28%, there are only 200 goods likes of sunscreen, pan masala, dishwasher, etc. Services like five-star hotels, movie tickets, and racing, etc come under this category. A look at the GST Impact on taxpayers in India: GST has impacted the taxpayers a lot as it has simplified the complicated tax structure and created transparency in product pricing. Also, it has given a uniformity in the taxpaying methods to the taxpayers. Many other GST Impact on Taxpayers are as follows:
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9/28/2021 08:29:27 pm
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